HM Revenue & Customs (HMRC) recently published its latest round of penalties for businesses breaching money laundering regulations, and the numbers should make any business owner sit up and take notice.
Between October 2024 and March 2025, HMRC fined 336 businesses a total of over £3.2 million for anti-money laundering (AML) failings.
If your business operates in certain sectors, you may be legally required to register with HMRC for supervision under the Money Laundering Regulations.
Failing to comply or register could cost you thousands.
Could your business be affected?
Sectors that need to comply include:
- Estate and letting agents
- Company formation agents
- Art market participants
- High-value dealers
If your business carries out activities in these areas, even on a small scale, you may need to register with HMRC and follow strict AML rules.
How do the fines work?
The penalties are far from trivial.
For example, HMRC applies a £5,000 fine for every three months your business should have been registered but was not.
If you are more than a year late, an extra £200 per period is added on top.
The fines can sometimes be reduced based on your gross profit, whether you came forward voluntarily, or if you pay the penalty quickly.
HMRC has the power to adjust the fine to make sure it is appropriate, and they usually add a £350 administration fee on top.
Do not wait for HMRC to find you
One of the most important factors in reducing a fine is whether you come forward voluntarily. If HMRC discovers the breach first, the penalties are often far higher.
The longer you leave checking whether your business should be registered, the bigger the risk.
If you have any doubts, our team can help you check whether you need to register for Money Laundering Regulations and help with your application to HMRC.
We can also support you with policies to remain compliant and help with voluntary disclosures if you think you may have breached the rules. Contact us today.
